Downtown Posner Building to become apartments

The Posner Building would be converted into high-end apartments, under a newly disclosed plans that would help revive downtown Milwaukee's west side.

The seven-story building, 152 W. Wisconsin Ave., features Mo's Irish Tavern on parts of the first and second floors, but has been otherwise largely vacant for several years.

HKS Holdings LLC, led by Tyler Hawley, Joe Klein and Kyle Strigenz, has agreed to convert the building's empty upper floors into 105 apartments, city officials announced Thursday. The redeveloped building also will include new street-level retail space next to Mo's Irish Tavern, which will remain.

Financing for the project will include a $13.75 million market-rate loan from the Wisconsin Housing and Economic Development Authority.

Also, HKS Holdings will be able to recover up to $2.5 million through new property taxes from the building's improvements. That tax incremental financing district will require Common Council approval.

The building, with around 108,000 square feet, is owned by Mostreet LLC, a group led by Mo's owner John Vassallo.

The apartment development is among several projects taking advantage of increased state funds to redevelop historic buildings.

The Legislature and Gov. Scott Walker last year approved legislation that raised the state historic preservation tax credit from 5% of qualified renovation costs to 20% of those costs. Those credits can be combined with 20% federal historic preservation tax credits.

Those higher state credits, which took effect Jan. 31, have led to greater interest in historic preservation developments. The development also will receive a Wisconsin Economic Development Corp. grant.

The Posner Building project is among a series of new apartment developments in the works for downtown's west side. They include a $28 million proposal by Chicago developer John Mangel to convert the former Blue Cross offices, 401 W. Michigan St., into 188 high-end units.

“I am pleased the Posner Building will again be a vital part of West Wisconsin Avenue,” Mayor Tom Barrett said, in a statement. “A lot of good work is underway to strengthen this part of Milwaukee’s downtown. Additional residential development and more street-facing retail are certainly part of Wisconsin Avenue’s future.”

Various plans to redevelop the Posner Building have been discussed off and on since at least 2000.

Originally called the Caswell Building, the first phase was built in 1907 on Wisconsin Ave. by Max Goldstine, of Commonwealth Realty, and named for Napoleon Bonaparte Caswell, a Milwaukee pioneer and land developer. An addition, along Plankinton Ave., was built a decade later.

Commercial Real Estate News

Two packaging companies, both owned by Quad/Graphics Inc., are planning to expand their neighboring facilities in Franklin, according to information filed with the city.

Transpak Corp. and Proteus Packaging Corp. both operate on World Packaging Circle, a cul-de-sac within Franklin Business Park, south of W. Ryan Road and west of S. Oakwood Park Drive. Both companies moved to Franklin from Milwaukee in 2007, and were sold to Quad in 2013.

Transpak's services include export, domestic and military packaging, as well as product distribution. It operates a 300,000-square-foot facility, according to the company's website.